The Futuring Approach to Orange Company - Case Study Example

Orange company Name: Course: Tutor: Date: TABLE OF CONTENTS 2.0 Introduction 4 3.0 Future vision of Orange Company 5 3.1 Environmental scanning 6 3.2 Political analysis 6 3.3 Economic analysis 7 3.4 Social analysis/ scanning 8 3.5 Environmental analysis 8 3.6 Legal analysis 9 3.7 Technological 9 4.0 Key strategic issues 10 Reference: 11 Orange Company 1.0 Executive summary Orange company was established in 1994 and its main aim was to improve communication through technology among people and organizations. Orange company has its operations in five continents and it serves more than 176 million customers (Book, 2010). The company is ranked third among telecommunication companies in Europe but ranked first as the broadband internet service provider globally. The company is expanding its operations due to the competent management team and employees. The company has employed more than 21000 employees; all are experienced professionals who are committed and dedicated in their work for the company’s success and achievement of the set goals and objectives (Arkadi & Bruce, 2008). The company is highly reputed and has good image globally for being innovative, creative and improving media and public relations (Plunkett, 2008). The company targets all people and organizations globally with its products and services such as modems, electronic money transfer, tariffs, broadband internet and mobile phones. The company operates in France, Spain, UK, Kenya, Mali, Senegal, Guinea, Slovakia, Switzerland, Equatorial Guinea, and Romania. The company has strategies which have helped it to expand, increase its customer base and sales and to penetrate into new markets (Dee & Brian, 2002). The company has been able to compete favorably with its competitors in the industry. There is stiff competition in the telecommunication industry and its key rivals are nokia, safaricom and many others (Plunkett, 2008). Though there was financial crisis in 2009, its revenues were not affected very much, though it dropped slightly from 46.8 billion euros in 2008 to 45.9 billion euros. The company is stable financially because of the prudent management which is based on the values and principles of the company. The company’s services are efficient, effective, universally acceptable, accessible and reliable globally; hence can easily gain the competitive advantage. Its products and services are tailor made to suit customers needs and this will make the customers to like the products and even to purchase more; hence increasing the sales and in the long run, profit margins (Goodman, 2005). 2.0 Introduction The company operates in a competitive telecommunication industry. The company provides telecommunication services such as mobile phones, electronic money transfer, broadband internet, and modems (Dee & Brian, 2002). The company has some strategically made set goals and objectives. These objectives include: To provide quality services that meet customer’s specifications at all times in all the markets it operate (Arkadi & Bruce, 2008). To employ experienced workforce who are competent, experienced, have the required skills, know how, knowledge and confident in service delivery (Goodman, 2005). To expand its network operations and services to all countries in the world by 2020 due to high demand of its quality products (Plunkett, 2008). To introduce new products and services in the market so as to compete favorably with other rivals in the market. It is aiming at becoming the market leader with the largest market share, many customers and producing quality goods and services. To meet all the telecommunication and international standards, rules and regulation in the industry so as to gain access to many new markets globally (Dee & Brian, 2002). To be a leading creative and innovative company driven by technological advance so as not to be obsolete in the market and maintain quality products that satisfies the customers and the potential customers needs (Goodman, 2005). To meet the investors, shareholders, employees and all the stakeholders to company’s expectations so as to maintain mutual relationship with all in order to avoid stalemate in management (Book, 2010). To expand the market base by 20% and to introduce online marketing services so that business can be transacted online so as to save time and money. To attain 12% growth rate annually and to improve its performance in terms of market stability, profit margins and sales (Dee & Brian, 2002). To be listed in the stock exchange in many countries in the next five years. To engage in social responsibility where it will engage itself in planting trees, helping the needy but the bright students by paying their fees in the learning institutions and settling medical fees for patients who are unable to settle their medical bills (Plunkett, 2008). These objectives are meant to ensure that the company gains the competitive advantage, trust and loyalty from the customers and the potential customers. Technology is the pillar and the driving force for it to achieve all the set goals and objectives (Arkadi & Bruce, 2008). 3.0 Future vision of Orange Company A vision of a company is succinct, inspiring and short statement and it gives what the company intends to become and to accomplish in future. It is usually stated in competitive terms so as to be appealing. This sets the image of the company which provides the goals of a company before it commences its business. It sets out the future aspirations but it does not specify the ways and means that will be used to achieve those desired goals (Dee & Brian, 2002). The vision of the Orange Company is to provide high quality products and services by building a brand value by being innovative and creative so as to be the best globally in terms of customer service, consumer value and technological advancement in five years time. This vision of Orange Company is supported by the three fundamental principles that make the foundation for all operations and activities of the company. These are: organizational transparency, excellence and core values (Book, 2010). The company’s aim is to provide high quality branded products and services of superior quality. The company will have to attain this in the next five years by producing high quality products and services. This vision is to be the guiding principle so as to compete favorably and to outperform its competitors in the industry which is rapidly changing or dynamic (Goodman, 2005). 3.1 Environmental scanning Environmental scanning entails assessing and appraising the business operating environment so as to know the internal and external factors that may affect the company. PESTEL factors are political, economic, social, legal and technological (Goodman, 2005). 3.2 Political analysis Political analysis concerns the government stability and peace in different countries. The company has a brighter future because, before it decides to invest in a certain country, it considers the political stability of a country. This is meant to reduce the risks associated with the wars and tensions which may affect the business operations. If the government of the country is not friendly, then the company may not invest in that country. A peaceful country and favorable terms and conditions of conducting business is a politically stable country. A country with constant wars, tensions in times of elections is not appropriate for doing business (Dee & Brian, 2002). The future of orange company is bright because most countries in the world are trying to attract investors by ensuring their political stability. Politically unstable country will risk the country from getting huge losses and the shareholders may not invest in the company. The company’s future is bright because in all the countries it has opened its operations, it has been making huge profits; hence attracting more shareholders and financiers to the company because they know they will not loose their investment and they are assured of favorable returns. The company has entered into a joint venture with T-Mobile and both companies would share the liabilities and assets 50/50 (Goodman, 2005). 3.3 Economic analysis The company is economically stable and it can overcome any unfavorable economic conditions. For example, the financial crisis of 2009, though it affected the company, its returns reduced slightly. This made the company to be reputed in the industry because other firms in the industry almost went down and are still recovering. This means that, the future of the company is prosperous. The company is able to repay the loans with ease and taxes because its businesses generate sufficient revenues that that service all its financial needs (Goodman, 2005). The company is planning to expand its operations to other countries because it intends to offer an initial public offer (IPO) so as to generate more funds. The customers of the company have been increasing rapidly; increased sales of mobile phones and other internet services. The company’s future economic growth is expected to grow by 14% and it has known how to deal with bank interests rates, exchange rates and how to utilize financial resources. Most financial institutions are promising the loans at a lower rate to the company in future because of its past financial records (Dee & Brian, 2002). 3.4 Social analysis/ scanning The company is favored internationally because it has known how to ensure balanced employment opportunities to all people regardless of race, gender or ethnic group. Though mobile phones have been said by the health professionals to be a threat to people’s health, the company is planning to manufacture phones which do not affect people’ health condition. This will give the company an added advantage in future because customers and the potential customers will feel the company is concern about their health (Book, 2010). The women discrimination in developing countries is dominant especially when employment opportunities arise. There are a few women employed compared to men; but the company management has introduced future employment guidelines so as to ensure justice and equality attained. The company is planning to ensure its products respects the culture, beliefs and demographics of its customers by providing services and products which are tailor made to suits the needs of that particular market (Arkadi & Bruce, 2008). 3.5 Environmental analysis The company is in the forefront by ensuring the environment is conserved. The mobile phones can be recycled so as to reduce green house gas emission by 21% and to minimize consumption of energy by 14% by the year 2015. The company has launched a friendly environmental action plan that will reduce global warming (Dee & Brian, 2002). The company has been planting trees and ensuring that it comply with the rules and regulations governing the industry and environment. Environment analysis is important because different countries have their own ways of ensuring companies adheres to the country’s environmental measures; hence important in ensuring the growth of the company (Goodman, 2005). 3.6 Legal analysis For Orange Company to operate effectively, there must be some rules and laws governing its operations. All companies must comply with both local and international laws in order to have smooth business operations. Orange company is a well known company that complies with all regulation whether local or international. This has been an added advantage to the company because most governments do not subject the company to more stringent rules and regulations. Such laws which must be complied upon are licensing, tax rules and any other law that must be complied upon. The company is therefore of a smooth expansions without much legal complications due to the past track records. Some countries which have unbearable rules and regulation can be avoided because it will be costly and time consuming following the set legal procedures (Goodman, 2005). 3.7 Technological The company is well known in the telecommunication industry for its creativity and innovation all over the world. The company can achieve its expansion program because of the continuous introduction of new products and services in the market (Plunkett, 2008). This will attract more customers which will lead to increased sales and profit margins. The variety of products which are technologically driven such as HTC 7 Mozart, mobile phones, modems and skype are of them products which will make the company to be attractive in future. The company will gain and remain competitive in the market because of meeting not only what the customers want but high quality products. The Orange Innovation Award which is sponsored by the company will attract more innovations in the future and this will ensure the company outperform it competitors (Book, 2010). The micro analysis considers the resources the company has. The company has qualified personnel who are not only dedicated but creative and innovative. The financial resources will help the company when expanding its operations. However, there are consistent management wrangles and conflicts which may hinder the company from progressing; but there are modalities being set to ensure the top management and subordinate staff work in unity and harmony. The company’s assets are unique and are long term; hence can used as collateral to secure loans incase the company run short of funds. The competitors cannot outperform Orange Company because of its strategies to counter competition (Dee & Brian, 2002). 4.0 Key strategic issues From the environmental scanning, there are some critical success factors that will assist the company achieve its set goals and objectives. First is the dedicated team of management that will ensure the strategies are formulated and implemented accordingly (Goodman, 2005). The improved creativity and innovation which has been embraced by the company will ensure the company gain competitive advantage and to increase its customers in all regions where it has opened branches (Plunkett, 2008). Another important success factor is the compliance of the laws and regulations both locally and internationally. This has made the company to gain reputation and good image and many countries want the company to operate in other countries. This is a success factor because the company will not be subjected to stringent laws for it to operate due to its past impressive performance. This will be an added advantage to the company because it will easier for it to be licensed to operate; hence can dominate the market before its competitors come in (Goodman, 2005). the company’s participation in social responsibility will ensure it retains its customers because it will have build the loyalty and trust (Book, 2010). However, the company’s wrangles can bring down the company and the competitors can take advantage of the situation to outperform it. Reference: Arkadi, K. & Bruce, P. (2008). The Orange Code: How ING Direct Succeeded by Being a Rebel with a Cause. New York: John Wiley and Sons. Book, LLC. (2010). Telecommunications Companies of Moldova: Mobile Phone Companies of Moldova, Orange Moldova, Moldcell, Moldtelecom, Interdnestrcom, Eventis and Unit. Oklahoma: Textstream. Dee, P. & Brian, H. E. (2002). Attracting capital from angels: how their money--and their experience--can help you build a successful company. New York: John Wiley and Sons. Goodman, M. B. (2005). Corporate communications for executives. New York: SUNNY Series. (Goodman, 2005). Anatomy of a business plan: the step-by-step guide to building your business and securing your company's future. New York: Aka associates. Plunkett, J. W. (2008). Plunkett's Telecommunications Industry Almanac 2009. Kansas: Plunkett Research, Ltd. Read More